GBP/USD is flat ahead of Wednesday’s budget – Scotiabank

The Pound Sterling (GBP) is entering Monday’s NA session flat against the US Dollar (USD) as it attempts to consolidate its modest recovery from last week’s low, Scotiabank's FX strategists Shaun Osborne and Eric Theoret report.

UK/US yield spreads have recovered

"Domestic risk is elevated as we look to the release of the government’s latest budget, scheduled for Wednesday. There are no major data releases scheduled for this week, and the BoE calendar includes two speaking engagements from doves Greene and Dhingra."

"UK/US yield spreads have recovered following their pullback from late October, offering the GBP some support through its month-to-date stabilization above 1.30."